M/S Naturals Dairy (P) Ltd. vs The Union Of India on 11 May, 2026

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    Patna High Court – Orders

    M/S Naturals Dairy (P) Ltd. vs The Union Of India on 11 May, 2026

    Author: A. Abhishek Reddy

    Bench: A. Abhishek Reddy

                          IN THE HIGH COURT OF JUDICATURE AT PATNA
                                    Civil Writ Jurisdiction Case No.5965 of 2026
                     ======================================================
                     M/s Naturals Dairy (P) Ltd. a company registered under the Companies Act,
                     1956 having its registered office at Plot No.- NS-11, Patliputra Industrial
                     Area, 1st Plot at BIADA Gate No.5, Town and District Patna through its
                     authorised representative Sri Hemant Kumar Das, aged about 59 years, son of
                     Late Awadhesh Kumar Das, Resident of 504, White House, Block-A, Budha
                     Marg, P.S. Kotwali, Town and District Patna, Bihar.
    
                                                                                 ... ... Petitioner/s
                                                      Versus
               1.    The Union of India through the Secretary, Ministry of New and Renewable
                     Energy, Government of India, New Delhi.
               2.    The Secretary, Ministry of New and Renewable Energy, Government of
                     India, New Delhi.
               3.    Indian Renewable Energy Development Agency Limited (IREDA), 3rd
                     Floor, August Kranti Bhawan, Bhikaji Cama Place, New Delhi- 110066
                     through its Chairman and Managing Director.
               4.    The Chairman and Managing Director, Indian Renewable Energy
                     Development Agency Limited (IREDA), 3rd Floor, August Kranti Bhawan,
                     Bhikaji Cama Place, New Delhi- 110066.
               5.    The Executive Director (Legal Department), Indian Renewable Energy
                     Development Agency Limited (IREDA), 3rd Floor, August Kranti Bhawan,
                     Bhikaji Cama Place, New Delhi- 110066.
               6.    The Director Finance-cum-CFO, Indian Renewable Energy Development
                     Agency Limited (IREDA), 3rd Floor, August Kranti Bhawan, Bhikaji Cama
                     Place, New Delhi- 110066.
               7.    The General Manager (Projects), Indian Renewable Energy Development
                     Agency Limited (IREDA), 3rd Floor, August Kranti Bhawan, Bhikaji Cama
                     Place, New Delhi- 110066.
    
                                                               ... ... Respondent/s
                     ======================================================
                     Appearance :
                     For the Petitioner/s   :      Mr. Sanjay Kumar Singh, Sr. Adv.
                                            :      Mr. Nikhil Kumar Agrawal, Adv.
                     For UOI                :      Mr. Apurva Kumar, CGC
                     For Respondent Nos.3to7:      Mr. Prashant Kumar, Adv.
                                            :      Mr. Nishant Kumar, Adv.
                                            :      Mr. Shashank Shekhar, Adv.
                     For the Respondent/s   :      Mr. Additional Solicitor General
                     ======================================================
                     CORAM: HONOURABLE MR. JUSTICE A. ABHISHEK REDDY
                                           ORAL ORDER
    
    5   11-05-2026

    Heard the learned counsel for the parties.

    The present writ petition has been filed for the
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    SPONSORED

    following relief(s):-

    “i. To issue an appropriate writ (s)/
    order (s)/ direction(s) in the nature of Mandamus
    commanding the Respondent IREDA to forthwith
    release the balance sanctioned loan amount as per
    Sanction Letter No. TS-40/28/2024-
    IREDA/4733/2024 dated 26.06.2024 and Loan
    Agreement dated 28.06.2024, to enable the
    Petitioner to complete and commission the Project
    within the stipulated deadline of 25.05.2026.

    ii. To issue and appropriate
    writ/order/direction in the nature of Certiorari
    quashing and setting aside the Show Cause Notice
    dated 17.03.2026. issued by Respondent IREDA
    (Ref. TS-40/28/2024-IREDA/7255) as being
    arbitrary, unreasonable, based on erroneous
    premises, and violative of Article 14 of the
    Constitution of India;

    iii. To issue and appropriate writ(s)/
    order(s)/ direction(s) in the nature of Mandamus
    declaring that the perfection of charge on
    17.10.2025. was a lawful modification of a pre-
    existing charge in favour of Respondent IREDA
    (originally created on 27.08.2024), did not
    constitute any breach of Conditions Precedent,
    misrepresentation or suppression of facts, and does
    not constitute an Event of Default under the Loan
    Agreement dated 28.06.2024.

    iv. To issue and appropriate writ(s)/
    order(s)/ direction(s) in the name of Mandamus
    directing the Respondent IREDA to maintain the
    status quo and refrain from declaring an Event of
    Default, invoking any security, recalling the loan, or
    taking any coercive or adverse action against the
    Petitioner, its promoters, or its assets pending the
    disposal of this Writ Petition.

    v. To any other relief(s) that the
    Petitioner is entitled to in the facts and
    circumstances of the case. ”

    2. At the outset, learned counsel appearing on behalf

    of the respondent Nos. 3 to 7 herein i.e., Indian Renewable
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    Energy Development Agency Limited (IREDA) has objected to

    the very maintainability of the present writ petition on the

    ground of territorial jurisdiction. An application named as

    “Preliminary Objections” on behalf of the respondent Nos. 3 to

    7 has also been filed.

    3. Having regard to the above, the objections with

    regard to the maintainability of CWJC is taken up first for

    consideration.

    4. Learned counsel appearing on behalf of the

    respondent Nos. 3 to 7 submits that the IREDA is a specialized

    finance institution and the petitioner has approached the said

    institution for grant of term loan of Rs. 122.75 crores towards

    the project. The loan was sanctioned vide letter No. TS-

    40/28/2024-IREDA/4733/2024 dated 26.06.2024 for

    establishment of 100 KLPD Grain Based Thermal Plant at

    village Panapur, Tehsil Motipur, District Muzaffarpur, Bihar.

    Learned counsel submits that the agreement for sanction of the

    loan was entered between the parties at New Delhi, the loan

    amount was advanced at New Delhi, the re-payment of the loan

    to the IREDA was to be made at New Delhi and as per the

    Article VII of the loan agreement dated 28.06.2024, the Civil

    Courts/ Tribunals in Delhi/ New Delhi alone shall have
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    jurisdiction to entertain any suit or other legal proceedings

    arising out of this agreement. Therefore, it is submitted that the

    present CWJC before this court is not maintainable. Learned

    counsel has drawn the attention of the Court to Article VII of the

    agreement entered between the petitioner and the IREDA in

    support of his submissions. Further, it is submitted that the

    petitioner has consciously entered into the loan agreement dated

    28.06.2024 with the respondents and he is bound by the terms

    and conditions of the said agreement. That the petitioner having

    entered into the loan agreement and subjected himself to the

    jurisdiction of the courts in Delhi/ New Delhi cannot file the

    present CWJC before the Patna High Court. That the present

    writ petition is misconceived and filing of the writ petition in

    this Hon’ble High Court amounts to forum shopping and is an

    abuse of the process of law. Learned counsel submits that

    merely because the unit is set up in the State of Bihar, this Court

    does not have jurisdiction to entertain the present writ petition.

    5. Learned counsel for the respondent-IREDA has

    relied on the following judgments in support of his case and

    prayed for dismissing the present writ petition.

    “i. In the case of Rakesh Kumar Verma Vs. HDFC Bank Ltd.

    reported in 2025 SCC OnLine SC 752.

    ii. In the case of Swastik Gases Private Limited Vs. Indian Oil
    Patna High
    Court CWJC No.5965 of 2026(5) dt.11-05-2026
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    Corporation Limited reported in 2013 4 SCC (Civ) 157. “

    6. Per contra, the learned senior counsel appearing

    on behalf of the writ petitioner has vehemently opposed the

    submissions made by the counsel for the respondent Nos. 3 to 7.

    Learned senior counsel has stated that the entire cause of action

    in this particular case has arisen in the State of Bihar, that the

    petitioner is resident of Bihar, the necessary permissions are

    granted in Bihar, that the subject land of BIADA is allotted in

    Bihar, that the factory in question is located in the State of Bihar

    and, therefore, this Court has got territorial jurisdiction to

    entertain the present writ petition. Learned senior counsel has

    stated that the respondent authority has sanctioned the loan of

    Rs. 122.75 crores vide letter dated 26.06.2024, entered into loan

    agreement on 28.06.2024 and, thereafter, a charge was created

    on the properties belonging to the petitioner’s company on

    27.08.2024. That subsequently on 29.08.2024, a deed of

    guarantee was also executed between the parties and, the charge

    on the property was registered with Ministry of Company

    Affairs (MCA). Further, it is stated that the IOM in favor of the

    respondent-IREDA was executed on 29.09.2025 and the

    modification of the charge was done on 17.10.2025. That there

    is absolutely no 3rd party encumbrance or interest on the subject

    properties on which a charge has been created in favor of
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    IREDA way back on 28.07.2024. Learned senior counsel has

    stated that out of Rs. 122.75 crores total loan sanctioned, the

    respondents have already disbursed a loan amount of Rs. 110

    crores and the balance loan amount of approximately Rs. 12.5

    crores is being withheld solely on the basis of some

    misinterpretation and misapprehension of the respondents.

    Learned senior counsel has brought to the notice of the Court

    the show cause notice dated 17.03.2026 issued by the

    respondent-IREDA, and has stated that the authority on the

    premise that the petitioner has suppressed the order of Calcutta

    High Court dated 13.04.2025 and gone ahead with the

    modification of the charge on 17.10.2025. Learned senior

    counsel has stated that the order of the Calcutta High Court was

    under Section 9 of the Arbitration Act, that initially the same

    was granted on 13.04.2025 and was subsequently vacated on

    20.05.2025 and thereafter, an injunction granted by the said

    High court on 20.08.2025, which was also subsequently

    vacated. That subsequently the arbitration proceedings were

    initiated before by an arbitrator. That though an order was

    passed initially by the arbitration, the same was subsequently

    withdrawn by the learned arbitrator vide order dated 23.03.2026.

    Learned senior counsel has submitted that the lis which was
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    pending before the Calcutta High Court and before the arbitrator

    is between the petitioner and another company by the name of

    Repower Renewable Energy Limited and therefore, the said

    order was not binding on the respondent-IREDA. It is submitted

    that the impugned notice is without any legal basis and based on

    misinterpretation of the orders passed by the Calcutta High

    Court and that of the arbitrator. That the modification of the

    charge on 17.10.2025 is in continuation of the earlier charge

    created in favor of the respondent-IREDA and the order of the

    Calcutta High Court dated 13.04.2025 does not in any manner

    create an embargo or create any legal impediment on the

    petitioner from going ahead with the modification of the charge

    on 17.10.2025. Further, it is stated that as on date, there is

    absolutely no embargo/ charge on the properties mortgaged/

    charged with the IREDA and therefore, the authority may be

    directed to release the balance loan amount to the petitioner so

    as to enable him to complete the project and start commercial

    production. Learned senior counsel has submitted that more

    than 90% of the work is completed and in case the balance loan

    amount is not disbursed, the petitioner will not be in a position

    to install the necessary equipment and pay various vendors. It is

    further submitted that in case there is any delay in disbursement
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    on the balance loan amount, the entire project will get derailed

    which will not only result in escalation of costs but will also

    lead to payment of additional penal interest and declaring the

    unit as NPA. Learned senior counsel has relied on the judgment

    of the Hon’ble Supreme Court in the case of Maharashtra

    Chess Association vs. Union of India and others reported in

    2019 SCC OnLine SC 932 in support of his case.

    7. In order to resolve the issue, it is necessary to

    extract the relevant portion of the loan agreement entered

    between the petitioner and the respondent Nos. 3 to 7, more

    specifically, Article VII of the agreement which reads as under;

    “ARTICLE – VII
    EFFECTIVE DATE OF AGREEMENT/PLACE
    OF DISBURSEMENT OF LOAN BY IREDA AND
    REPAYMENT BY BORROWER ETC.

    1) This Agreement shall become binding on the
    Borrower and IREDA on and from the date first above written
    and after both IREDA and Borrower have executed the same. It
    shall be in force till all the monies due and payable under this
    Agreement are fully paid off.

    II) The loan will be advanced by IREDA to the
    Borrower and repaid by the Borrower to IREDA at New Delhi
    and Civil Courts/Tribunals in Delhi/ New Delhi alone shall have
    jurisdiction to entertain any suit or other legal proceedings
    arising out of this Agreement.”

    8. Learned Counsel appearing on behalf of the

    respondent-IREDA has laid emphasis on the above article and

    submitted that the present CWJC is not maintainable before this

    High Court.

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    9. Though the counsel for the IREDA has relied on

    the judgments in the case of Rakesh Kumar Verma Vs. HDFC

    Bank Ltd. reported in 2025 SCC OnLine SC 752 and in the

    case of Swastik Gases Private Limited Vs. Indian Oil

    Corporation Limited reported in 2013 4 SCC (Civ) 157 in

    support of his case, it is to be noted that the judgment of the

    Hon’ble Supreme Court in the case of Rakesh Kumar Verma

    Vs. HDFC Bank Ltd. reported in 2025 SCC OnLine SC 752

    pertains to service law and emanating from this Hon’ble High

    Court in a Civil Revision. The other citation relied by the

    respondent-IREDA, 2013 SCC OnLine SC 564 in the case of

    Swastik Gases Private Limited Vs. Indian Oil Corporation

    Limited is under the Arbitration Act. Therefore, this Court is of

    the opinion that the said two judgments relied by the

    respondent-IREDA are not applicable to the facts of the present

    case.

    10. The Hon’ble Supreme Court in the case of

    Maharashtra Chess Association vs. Union of India and others

    reported in 2020 13 SCC 285 while dealing with the powers of

    the High Court under Article 226 of the Constitution of India

    has held as under;

    “10 Parties cannot by agreement confer
    jurisdiction on a court which lacks the jurisdiction
    to adjudicate. But where several courts would have
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    jurisdiction to try the subject matter of the dispute,
    they can stipulate that a suit be brought exclusively
    before one of the several courts, to the exclusion of
    the others. Clause 21 does not oust the jurisdiction
    of all courts. Rather, the Appellant and the second
    Respondent have agreed to submit suits or legal
    actions to the courts at Chennai. So long as the
    courts at Chennai have proper jurisdiction over a
    dispute involving the Appellant and the second
    Respondent, Clause 21 is not in violation of the
    principle set out in A B C Laminart. However, the
    decision in A B C Laminart was made in the context
    of an original suit and the jurisdiction of an
    ordinary civil court. The present case is materially
    different. The Appellant approached the Bombay
    High Court under Article 226. The second
    Respondent seeks to rely on Clause 21 to oust the
    writ jurisdiction of the High Court of Bombay.

    13. The role of the High Court under the
    Constitution is crucial to ensuring the rule of law
    throughout its territorial jurisdiction. In order to
    achieve these transcendental goals, the powers of
    the High Court under its writ jurisdiction are
    necessarily broad. They are conferred in aid of
    justice. This Court has repeatedly held that no
    limitation can be placed on the powers of the High
    Court in exercise of its writ jurisdiction. In A V
    Venkateswaran, Collector of Customs, Bombay v
    Ramchand Sobhraj Wadhwani8
    a Constitution
    Bench of this Court held that the nature of power
    exercised by the High Court under its writ
    jurisdiction is inherently dependent on the threat to
    the rule of law arising in the case before it:

    “”10…We need only add that the
    broad lines of the general principles on
    which the court should act having been
    clearly laid down, their application to the
    facts of each particular case must
    necessarily be dependent on a variety of
    individual facts which must govern the
    proper exercise of the discretion of the
    Court, and that in a matter which is thus pre-
    eminently one of discretion, it is not possible
    or even if it were, it would not be desirable
    to lay down inflexible Rules which should be
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    applied with rigidity in every case which
    comes up before the court.

    14. While the powers the High Court
    may exercise under its writ jurisdiction are not
    subject to strict legal principles, two clear
    principles emerge with respect to when a High
    Court’s writ jurisdiction may be engaged. First, the
    decision of the High Court to entertain or not
    entertain a particular action under its writ
    jurisdiction is fundamentally discretionary.
    Secondly, limitations placed on the court’s decision
    to exercise or refuse to exercise its writ jurisdiction
    are selfimposed. It is a well settled principle that the
    writ jurisdiction of a High Court cannot be
    completely excluded by statute. If a High Court is
    tasked with being the final recourse to upholding the
    rule of law within its territorial jurisdiction, it must
    necessarily have the power to examine any case
    before it and make a determination of whether or
    not its writ jurisdiction is engaged. Judicial review
    under Article 226 is an intrinsic feature of the basic
    structure of the Constitution.

    19. This argument of the second
    Respondent is misconceived. The existence of an
    alternate remedy, whether adequate or not, does not
    alter the fundamentally discretionary nature of the
    High Court’s writ jurisdiction and therefore does not
    create an absolute legal bar on the exercise of the
    writ jurisdiction by a High Court. The decision
    whether or not to entertain an action under its writ
    jurisdiction remains a decision to be taken by the
    High Court on an examination of the facts and
    circumstances of a particular case

    22. The mere existence of alternate
    forums where the aggrieved party may secure relief
    does not create a legal bar on a High Court to
    exercise its writ jurisdiction. It is a factor to be
    taken into consideration by the High Court amongst
    several factors. Thus, the mere fact that the High
    Court at Madras is capable of granting adequate
    relief to the Appellant does not create a legal bar on
    the Bombay High Court exercising its writ
    jurisdiction in the present matter.

    26. In the present case, the Bombay
    High Court has relied solely on Clause 21 of the
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    Constitution and Bye Laws to hold that its own writ
    jurisdiction is ousted. The Bombay High Court has
    failed to examine the case holistically and make a
    considered determination as to whether or not it
    should, in its discretion, exercise its powers under
    Article 226. The scrutiny to be applied to every writ
    petition under Article 226 by the High Court is a
    crucial safeguard of the rule of law under the
    Constitution in the relevant territorial jurisdiction.
    It is not open to a High Court to abdicate this
    responsibility merely due to the existence of a
    privately negotiated document ousting its
    jurisdiction”

    11. Further, the Hon’ble Supreme Court in the case of

    M/S. Kusum Ingots & Alloys Ltd vs Union Of India And Anr

    reported in 2004 6 SCC 254 has held as under;

    “12. This Court in Oil & Natural Gas
    Commission v. Utpal Kumar Basu and Ors.
    (1994
    (4) SCC 711) held that the question as to whether
    the court has a territorial jurisdiction to entertain a
    writ petition, must be arrived at on the basis of
    averments made in the petition, the truth or
    otherwise thereof being immaterial.

    16. In Union of India v. Adani Exports
    Ltd.
    , [(2002) 1 SCC 567] it was held that in order to
    confer jurisdiction on a High Court to entertain a
    writ petition it must disclose that the integral facts
    pleaded in support of the cause of action do
    constitute a cause so as to empower the court to
    decide the dispute and the entire or a part of it arose
    within its jurisdiction.

    18. The facts pleaded in the writ petition
    must have a nexus on the basis whereof a prayer can
    be granted. Those facts which have nothing to do
    with the prayer made therein cannot be said to give
    rise to a cause of action which would confer
    jurisdiction on the court.

    25. When a part of the cause of action
    arises within one or the other High Court, it will be
    for the petitioner to choose his forum.

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    27. When an order, however, is passed
    by a court or tribunal or an executive authority
    whether under provisions of a statute or otherwise,
    a part of cause of action arises at that place.

    30. We must, however, remind ourselves
    that even if a small part of cause of action arises
    within the territorial jurisdiction of the High Court,
    the same by itself may not be considered to be a
    determinative factor compelling the High Court to
    decide the matter on merit. In appropriate cases, the
    Court may refuse to exercise its discretionary
    jurisdiction by invoking the doctrine of forum
    conveniens.”

    12. Further, the Hon’ble Supreme Court in the case of

    State of Goa v. Summit Online Trade Solutions (P) Ltd.,

    reported in (2023) 7 SCC 791 has held as under;

    “14. While dealing with an objection as
    to lack of territorial jurisdiction to entertain a writ
    petition on the ground that the cause of action has
    not arisen within its jurisdiction, a High Court
    essentially has to arrive at a conclusion on the basis
    of the averments made in the petition memo treating
    the contents as true and correct.

    15. The constitutional mandate of clause
    (2) is that the “cause of action”, referred to therein,
    must at least arise in part within the territories in
    relation to which the High Court exercises
    jurisdiction when writ powers conferred by clause
    (1) are proposed to be exercised, notwithstanding
    that the seat of the Government or authority or the
    residence of the person is not within those
    territories.

    16. However, in the context of a writ
    petition, what would constitute such “cause of
    action” is the material facts which are imperative
    for the writ petitioner to plead and prove to obtain
    relief as claimed.

    17. Determination of the question as to
    whether the facts pleaded constitute a part of the
    cause of action, sufficient to attract clause (2) of
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    Article 226 of the Constitution, would necessarily
    involve an exercise by the High Court to ascertain
    that the facts, as pleaded, constitute a material,
    essential or integral part of the cause of action…It,
    therefore, follows that the party invoking the writ
    jurisdiction has to disclose that the integral facts
    pleaded in support of the cause of action do
    constitute a cause empowering the High Court to
    decide the dispute and that, at least, a part of the
    cause of action to move the High Court arose within
    its jurisdiction. Such pleaded facts must have a
    nexus with the subject-matter of challenge based on
    which the prayer can be granted. Those facts which
    are not relevant or germane for grant of the prayer
    would not give rise to a cause of action conferring
    jurisdiction on the court.

    21. Assuming that a slender part of the
    cause of action did arise within the State of Sikkim,
    the concept of forum conveniens ought to have been
    considered by the High Court. As held by this Court
    in Kusum Ingots & Alloys Ltd. v. Union of India and
    Ambica Industries v. CCE, even if a small part of the
    cause of action arises within the territorial
    jurisdiction of a High Court, the same by itself could
    not have been a determinative factor compelling the
    High Court to keep the writ petitions alive against
    the appellant to decide the matter qua the impugned
    notification, on merit.”

    13. Having regard to the law laid down by the

    Hon’ble Supreme Court in the above mentioned cases, this

    Court is of the prima facie opinion that the powers under Article

    226 of the Constitution of India cannot be curtailed merely

    because, the parties have entered into an agreement and there is

    a clause which excludes the jurisdiction of other courts except

    the Delhi and New Delhi Civil Courts/ Tribunals. Further, it is to

    be noted that the said clause only states that except the Civil

    Court and Tribunal of Delhi and New Delhi, the other Courts do
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    not have jurisdiction to entertain any suit, however, it does not

    in any manner curtail the powers of the other High Courts. This

    court is of the opinion that cause of action in the present writ

    petition emanates from the State of Bihar, as the petitioner is a

    resident of Bihar, the unit is situated in the State of Bihar, land is

    allotted in Bihar etc. etc. and therefore, the contention of the

    respondent-IREDA that the writ is not maintainable is not

    correct.

    14. Having regard to the same, this Court is of the

    opinion that the present CWJC filed by the petitioner is

    maintainable in this High Court under Article 226.

    15. That insofar as the main prayer sought for in the

    present writ petition is concerned, this Court is of the opinion

    that the said prayer cannot be granted as the petitioner is seeking

    a direction to the respondent financial institution for disbursal of

    the balance loan amounts due to him. This Court is of the

    opinion that a mandamus cannot be issued to any financial

    institutions to grant a loan, disburse a loan, grant any OTS or

    give any direction which may have any kind of financial

    implications on the said financial institution. When, how, how

    much and what manner a loan has to be given, how much is to

    be disbursed, what timeline is to be followed, fixation of the
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    repayment schedules, granting of OTS, declaration of the loan

    as NPA are within the exclusive domain of the Bank expertise

    and it is akeen to a policy decision. Usually the Banks follow a

    set rules or guidelines issued by their own Bank or that of the

    RBI. The role or interference by the Courts in such manner is

    very minimal and mainly confined to any arbitrary action done

    contrary to the set rules or guidelines.

    16. The Hon’ble Supreme Court in a catena cases has

    time and again held that the High Court exercising jurisdiction

    under Article 226 of the Constitution of India should not

    interfere with the decisions taken by the financial institutions

    which will have any financial implication on the said institution.

    Therefore, this Court is not inclined to grant the relief sought for

    in the present writ petition.

    17. However, it is to be noted that the respondent-

    IREDA should practically take into consideration the fact that it

    has sanctioned nearly Rs. 122.75 crores to the petitioner’s unit

    and disbursed Rs. 110 crores to the petitioner and only the

    balance amount of approximately Rs. 10.5 crores needs to be

    disbursed. At this stage, it would not be prudent for any

    institution to stop the disbursal solely on the misapprehension

    that the petitioner has suppressed the order of the Hon’ble High
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    Court of Calcutta date 13.04.2025 and executed the

    modification of charge on 17.10.2025. This Court after going

    through the entire record is of the opinion that there is

    absolutely no embargo/ charge on the properties which have

    already been charged to the respondent-IREDA and which was

    only perfected by way of a modification of charge on

    17.10.2025. Neither the order of the Calcutta High Court nor the

    subsequent orders of the arbitrator are in existence as on date

    and there is no third party injunction/ charge on the properties

    which have already been mortgaged to the respondent institution

    way back on 27.08.2024. Therefore, the allegation that the

    petitioner has suppressed the order passed by the Hon’ble

    Supreme Court and arbitrator are completely misconceived and

    misplaced.

    18. Having regard to the same, this Court is of the

    opinion that the respondent-IREDA should reconsider the entire

    issue in a proper prospective and take a suitable decision duly

    taking into account that 90% of the loan amount has already

    been disbursed, that the unit is more than 90% complete, that

    the unit is at an advanced stage of completion and will shortly

    go into the commercial production etc. etc. Otherwise, it would

    be risking the very project and also the loan amounts which
    Patna High Court CWJC No.5965 of 2026(5) dt.11-05-2026
    18/18

    have already been disbursed. Further, it is to be noted that the

    present project is of national importance in view of the current

    crisis that the country is going through due to the ongoing Iran

    war. The dependence on the ethanol blending of the fuel would

    not only save precious foreign currency, conserve fuel but

    augment the profits of the oil companies. It is hoped that the

    IREDA will take a pragmatic and practical view of the entire

    issue and take a suitable decision in the interest of all the

    stakeholder including that of IREDA itself. This case should not

    turnout to be a classic proverbial case of “Killing the goose that

    lays the golden eggs”.

    19. With the above direction, the present writ petition

    stands disposed of.

    20. All pending I.As., if any, are deemed to have been

    disposed of.

    (A. Abhishek Reddy, J)
    Ayush/-

    U



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